<SEC-DOCUMENT>0000355019-14-000009.txt : 20140218
<SEC-HEADER>0000355019-14-000009.hdr.sgml : 20140217
<ACCEPTANCE-DATETIME>20140218172823
ACCESSION NUMBER:		0000355019-14-000009
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140214
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20140218
DATE AS OF CHANGE:		20140218

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FONAR CORP
		CENTRAL INDEX KEY:			0000355019
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				112464137
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10248
		FILM NUMBER:		14623133

	BUSINESS ADDRESS:	
		STREET 1:		110 MARCUS DR
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		6316942929

	MAIL ADDRESS:	
		STREET 1:		110 MARCUS DRIVE
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>fonar_8-k.htm
<DESCRIPTION>FONAR 8-K
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Courier New, Courier, Monospace; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Pursuant to Section 13 or 15(d) of the Securities
Act of 1934</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Date of Report (Date of earliest event reported):
February 14, 2014</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Courier New, Courier, Monospace; margin: 0; text-align: center"><B>FONAR CORPORATION</B></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">______________________________________________________</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: 0.5in">(Exact name of registrant
as specified in its charter)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 21%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">Delaware</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">0-10248</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">11-2464137</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(State or other jurisdiction of incorporation)</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">(Commission File Number)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">(I.R.S. Employer Identification No.)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">110 Marcus Drive</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Melville, New York 11747</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(631) 694-2929</P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(Address, including zip code, and telephone
        number of registrant's principal executive office)</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify">Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Written communications pursuant
to Rule 425 under the Securities Act 17 CFR 230.425)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Item 2.02(a) Results of Operations and Financial Condition.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify">We reported the results of operations
and financial condition of the Company for the fiscal quarter ended December 31, 2013 in a press release dated February 14,
2014.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Exhibits</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in">99.1 Press Release dated February 14, 2014</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 61%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 39%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">FONAR CORPORATION</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">(Registrant)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">By: /s/ Raymond Damadian</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 17.1pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">Raymond Damadian</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 17.1pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">President and Chairman</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Dated: February 18, 2014</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>fonar_exhibit-99.htm
<DESCRIPTION>FONAR PRESS RELEASE
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 20pt Arial, Helvetica, Sans-Serif"><B>FONAR&nbsp;</B></FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 30%; border-top: Black 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 14pt"><font style="font: 14pt Arial, Helvetica, Sans-Serif"><b><i>NEWS</i></b></font></td>
    <td style="width: 29%; border-top: Black 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="width: 41%; border-top: Black 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">For Immediate Release</font></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 12pt Arial, Helvetica, Sans-Serif">The Inventor of MR Scanning&trade;</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Contact: Daniel Culver</font></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 12pt Arial, Helvetica, Sans-Serif">An ISO 9001 Company</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Director of Communications</font></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Melville, New York 11747</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">E-mail: investor@fonar.com</font></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Phone: (631) 694-2929</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">www.fonar.com</font></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Fax: (631) 390-1709</font></td></tr>
</table>
<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 81pt"><B>FONAR Announces Fiscal 2014 Second Quarter Earnings Results</B></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 81pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 49.5pt"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Arial, Helvetica, Sans-Serif"><I>Second Fiscal 2014 Quarter Net Revenues
increase 83% over Second Fiscal Quarter 2013 to $17.6 million. </I></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 49.5pt"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Arial, Helvetica, Sans-Serif"><I>Second Fiscal 2014 Quarter Net Income
increases 88% over Second Fiscal Quarter 2013 to $3.0 million</I></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 49.5pt"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Arial, Helvetica, Sans-Serif"><I>Diluted EPS Available to Common Stockholders
for the Second Fiscal 2014 Quarter was $0.33, an increase of 57% over Second Fiscal Quarter 2013</I></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 49.5pt"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Arial, Helvetica, Sans-Serif"><I>FONAR records Fifthteenth straight quarter
of positive Net Income and Income from Operations of which most recent ten were greater than $1.5 Million</I></FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 85.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">MELVILLE, NEW YORK, February 14, 2014 &ndash;
FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning&trade;, reported its second quarter, fiscal 2014 results for the quarter
ended December 31, 2013. The Company&rsquo;s two industry segments include the management of 23 Stand-Up&reg; MRI (UPRIGHT&reg;
MRI) centers as well as its traditional MRI development, manufacturing and service business. Its stellar product line includes
the FONAR UPRIGHT&reg; Multi-Position&trade; MRI (aka STAND-UP&reg; MRI which enables <I>full weight-bearing MRI imaging </I>and
is particularly powerful in the gravity sensitive regions of the human anatomy, e.g. the spine, brain, hip, knee, ankle, foot,
shoulder, and pelvis. The FONAR UPRIGHT&reg; Multi-Position&trade; MRI scanner is the world&rsquo;s only MRI scanner licensed under
FONAR&rsquo;s multiple UPRIGHT&reg; MRI patents to scan all the patient&rsquo;s body parts in their normal fully <I>weight-bearing</I>
UPRIGHT&reg; position.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><U>Statement of Operations Items </U></B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Income from operations for the quarter ended
December 31, 2013, increased 91% to $3.3 million, as compared to $1.7 million for the same period one year earlier. For the six
month period ended December 31, 2013, income from operations was $7.4 million as compared to $3.6 million during the corresponding
period one year earlier, an increase of 104%.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net Income for the quarter ended December 31,
2013, increased 88% to $3.0 million, as compared to $1.6 million for the same period one year earlier. For the six month period
ended December 31, 2013, net income was $6.7 million as compared to $3.4 million during the corresponding period one year earlier,
an increase of 96%.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Diluted Net Income per Common Share available
to Common shareholders for the quarter ended December 31, 2013 increased 57% to $0.33, as compared to $0.21 for the same period
one year earlier.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the six month period ended December 31,
2013, Diluted Net Income per Common Share available to Common shareholders increased 63% to $0.70, as compared to $0.43 for the
same period one year earlier.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Total revenues for the quarter ended December
31, 2013, increased 83% to $17.6 million as compared to $9.6 million during the same period one year earlier. For the six month
period ended December 31, 2013, total revenues increased 80% to $34.4 million as compared to $19.1 million, one year earlier.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Revenue from the patient fee segment and management
and other fees segment, for the quarter ended December 31, 2013, increased 149% to $14.3 million, as compared to $5.7 million during
the same period one year earlier. At six months this also increased 149% to $28.5 million as compared to the same period one year
earlier at $11.5 million. This is the revenue that comes from patient fees and the management of the 23 FONAR Stand-Up&trade; MRI
diagnostic imaging centers, by FONAR&rsquo;s HMCA subsidiary.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><U>Balance Sheet Items</U></B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">At December 31, 2013, total current assets were
$43.5 million, total assets were $77.1 million, total current liabilities were $23.2 million, and total long-term liabilities were
$11.8 million.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">At December 31, 2013, total cash and cash equivalents
were $9.4 million.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">At December 31, 2013, total stockholder&rsquo;s
equity was $42.1 million.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">See the accompanying tables for more details.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><U>Recent Significant Events</U></B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In December, 2013, the Company settled a two-year
old patent infringement case brought against it. The infringement action alleged that FONAR&rsquo;s Upright&reg; MRI scanners infringe
plaintiff&rsquo;s patent which relates to the moving of a patient into the scanner. The Company took the position that the plaintiff&rsquo;s
claims were without merit and that their patent was invalid. The parties have settled the case and while FONAR will pay $150,000,
there are certain licenses and covenants not to sue again.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><U>Management Discussion</U></B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The acquisition of Health Diagnostic Management
(HDM) has been a significant source of profitability for the Company. The diluted earnings per share available for the common stockholder
for the six months which ended on December 31, 2013 increased <B>63%</B> to <B>$0.70 </B>when compared to one year earlier. The
Company plans to continue to grow at a reasonable pace while maintaining its highly profitable profile.&rdquo;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>About FONAR</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">FONAR (NASDAQ:FONR), Melville, NY, The Inventor
of MR Scanning&trade;, was incorporated in 1978, and is the first, oldest and most experienced MRI company in the industry. FONAR
introduced the world&rsquo;s first commercial MRI in 1980, and went public in 1981. Since its inception, nearly 300 recumbent-OPEN
MRIs and 157 UPRIGHT&reg; Multi-Position&trade; MRI scanners have been installed worldwide. FONAR&rsquo;s stellar product is the
UPRIGHT&reg; MRI (also known as the Stand-Up&reg; MRI), the only whole-body MRI that performs Position&trade; imaging (pMRI&trade;)
and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional
lie-down position. The FONAR UPRIGHT&reg; MRI often sees the patient&rsquo;s problem that other scanners cannot because they are
lie-down and &rdquo;weightless&rdquo; only scanners. The patient-friendly UPRIGHT&reg; MRI has a near-zero claustrophobic rejection
rate by patients. As a FONAR customer states, &ldquo;If the patient is claustrophobic in this scanner, they&rsquo;ll be claustrophobic
in my parking lot.&rdquo; Approximately 85% of patients are scanned sitting while they watch a 42&rdquo; flat screen TV. FONAR
is headquartered on Long Island, New York.</P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">UPRIGHT&reg; and STAND-UP&reg; are registered
trademarks and The Inventor of MR Scanning&trade;, Full Range of Motion&trade;, Multi-Position&trade;, Upright Radiology&trade;,
The Proof is in the Picture&trade;, True Flow&trade;, pMRI&trade;, Spondylography&trade;, Dynamic&trade;,Spondylometry&trade;,
CSP&trade;, and Landscape&trade;, are trademarks of FONAR Corporation.</P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">This release may include forward-looking statements from the company
that may or may not materialize. Additional information on factors that could potentially affect the company's financial results
may be found in the company's filings with the Securities and Exchange Commission.</P>


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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">CONDENSED CONSOLIDATED BALANCE SHEETS</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT PER SHARE
AMOUNTS)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">(UNAUDITED)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">ASSETS</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 62%; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">ASSETS</font></td>
    <td style="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right; text-indent: -5.4pt">December 31,</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">2013</P></td>
    <td style="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center; text-indent: -5.4pt">June 30,</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">2013</P></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Cash and cash equivalents</font></td>
    <td style="vertical-align: bottom; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,425 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,871 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Accounts receivable &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;5,359 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;4,444 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Accounts receivable - related party</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;60 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 17.1pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;- </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Medical receivable - net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">8,884</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">8,126</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Management and other fees receivable &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,347 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;11,466 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Management and other fees receivable &ndash; related medical practices &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,985 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right; text-indent: 0.5in">2,382</P></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Inventories</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;2,562 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;2,077 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Prepaid expenses and other current assets</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,901 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;1,500 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Current Assets</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43,523 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;37,866 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Property and equipment &ndash; net</P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;16,538</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;17,524 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Goodwill</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,767 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;1,767 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Other intangible assets &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,271 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;11,904 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Deferred income tax asset</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">2,936</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">2,936</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Other assets</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,050 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;1,154 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Assets</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 0.65pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;77,085 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;73,151 </font></td></tr>
</table>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 62%; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">LIABILITIES</font></td>
    <td style="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">December 31, 2013</font></td>
    <td style="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</td>
    <td style="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">June 30, 2013 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Current Liabilities:</font></td>
    <td style="vertical-align: bottom; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Current portion of long-term debt and capital leases</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;3,048 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;2,886 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Accounts payable</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;2,941 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;2,752 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Other current liabilities</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;9,401 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,636 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Unearned revenue on service contracts</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;5,725 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,965 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Unearned revenue on service contracts - related party</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 15.7pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Customer advances</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;2,041 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;1,858</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Income tax payable</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 17.1pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">20</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 36.6pt">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 36.6pt">Total Current Liabilities</P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,211</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;21,117 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Long-Term Liabilities:</P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Due to related medical practices</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;229 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;231</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Long-term debt and capital leases, less current portion</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">10,530 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">12,887 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Deferred income tax liability</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">462</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">462</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Other liabilities</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;596 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;654 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 36.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Long-Term Liabilities</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;11,817 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;14,234</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 36.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Liabilities</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;35,028</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;35,351</font></td></tr>
</table>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>


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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">CONDENSED CONSOLIDATED BALANCE SHEETS</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT PER SHARE
AMOUNTS)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">(UNAUDITED)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY (Continued)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 69%; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">STOCKHOLDERS' EQUITY:</font></td>
    <td style="width: 17%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">December 31, 2013 </font></td>
    <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</td>
    <td style="width: 12%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">June 30, 2013</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Class A non-voting preferred stock $.0001 par value; 453 shares authorized at December 31, 2013 and June 30, 2013, 313 issued and outstanding at December 31, 2013 and June 30, 2013</font></td>
    <td style="vertical-align: bottom; padding-right: 17.1pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;- </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 16.6pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;- </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Preferred stock $.001 par value; 567 shares authorized at December
        31, 2013 and June 30, 2013, issued and outstanding &ndash; none</P></td>
    <td style="vertical-align: bottom; padding-right: 17.1pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 16.6pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Common Stock $.0001 par value; 8,500 shares authorized at December
        31, 2013 and June 30, 2013, 6,022 and 5,981 issued at December 31, 2013 and June 30, 2013, respectively; 6,010 and 5,969 outstanding
        at December 31, 2013 and June 30, 2013, respectively</P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Class B Common Stock (10 votes per share) $ .0001 par value; 227
        shares authorized at December 31, 2013 and June 30, 2013, .146 issued and outstanding at December 31, 2013 and June 30, 2013</P></td>
    <td style="vertical-align: bottom; padding-right: 17.1pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;- </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 16.6pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;- </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Class C Common Stock (25 votes per share) $.0001 par value; 567 shares
        authorized at December 31, 2013 and June 30, 2013, 383 issued and outstanding at December 31, 2013 and June 30, 2013</P></td>
    <td style="vertical-align: bottom; padding-right: 17.1pt; padding-left: 5.05pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;- </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 16.6pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;- </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Paid-in capital in excess of par value</P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;174,770 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;174,499 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Accumulated deficit</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;(155,075)</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;(159,655)</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Notes receivable from employee stockholders</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42)</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(55)</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Treasury stock, at cost - 12 shares of common stock at December 31, 2013 and June 30, 2013</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right; text-indent: 0.5in"><u>(675)</u></P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right; text-indent: 0.5in"><u>(675)</u></P></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Fonar Corporation Stockholder Equity</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,979</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,115</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Non controlling interests</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,078 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,685 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Total Stockholders' Equity</P></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42,057 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37,800 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Total Liabilities and Stockholders' Equity</P></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;$&nbsp;&nbsp;&nbsp;77,085 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;$&nbsp;&nbsp;&nbsp;73,151 </font></td></tr>
</table>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">CONDENSED CONSOLIDATED STATEMENTS OF INCOME</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT PER SHARE
AMOUNTS)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">(UNAUDITED)</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">FOR THE THREE MONTHS ENDED DECEMBER 31,</font></td></tr>
<tr style="vertical-align: top">
    <td style="width: 76%; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">REVENUES</font></td>
    <td style="width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">2013</font></td>
    <td style="width: 2%; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</td>
    <td style="width: 11%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Product sales &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;755&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;1,080 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Service and repair fees &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,548 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,765 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Service and repair fees &ndash; related parties - net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Patient fee revenue, net of contractual allowances and discounts</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;5,894&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 16.6pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Provision for bad debts for patient fee</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">(2,223)</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 16.6pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">-</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Management and other fees &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,274 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,775 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Management and other fees &ndash; related medical practices &ndash; net</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,333 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,965 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 36.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Revenues &ndash; Net</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;17,609 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,613 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">COSTS AND EXPENSES</P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to product sales</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;631 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;904 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to service and repair fees</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;587 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;894 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to service and repair fees &ndash; related parties</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;6 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to patient fee revenue</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,028</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 16.6pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to management and other fees</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,190 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,235 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to management and other fees &ndash; related medical practices</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,270 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;852 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Research and development</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;374 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;320 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Selling, general and administrative</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,352 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,352 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Provision for bad debts</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(124) </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;325 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 36.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Costs and Expenses</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;14,314 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,891 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Income From Operations</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,295 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,722 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Interest Expense</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(237)</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(103)</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Investment Income</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Other Expense</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 17.1pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">-</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">(4)</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Income Before Provision for Income Taxes and Non Controlling Interests</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">3,118</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">1,675</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Provision for Income Taxes</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,048 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,620 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income - Non Controlling Interests</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;(905) </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;(271)</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income - Controlling Interests</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;2,143 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;1,349 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income Available to Common Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;2,003 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;1,259 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income Available to Class A Non-Voting Preferred Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income Available to Class C Common Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Basic Net Income Per Common Share Available to Common Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.33 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.21 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Diluted Net Income Per Common Share Available to Common Stockholders&nbsp;&nbsp;</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.33 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.21 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Basic and Diluted Income Per Share-Common C</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.09 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.06 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Weighted Average Basis Shares Outstanding-Common Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,006 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,926 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Weighted Average Diluted Shares Outstanding</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,133 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,054 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Weighted Average Basic Shares Outstanding &ndash; Class C</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">383</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">383</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Weighted Average Diluted Shares Outstanding &ndash; Class C Common</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">383</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">383</font></td></tr>
</table>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>


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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">CONDENSED CONSOLIDATED STATEMENTS OF INCOME</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">(AMOUNTS AND SHARES IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">(UNAUDITED)</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">FOR THE SIX MONTHS ENDED DECEMBER 31,</font></td></tr>
<tr style="vertical-align: top">
    <td style="width: 74%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="width: 13%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">2013</font></td>
    <td style="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">2012</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">REVENUES</font></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Product sales &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 8.1pt; text-align: right; text-indent: -8.1pt"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;783</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -18.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;2,121 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Service and repair fees &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;5,060 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;5,474 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Service and repair fees &ndash; related parties - net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 0.05in; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;55 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Patient fee revenue, net of contractual allowances and discounts </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;11,721</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 17.7pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;-&nbsp;&nbsp;</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Provision for bad debts for patient fee</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">(4,262)</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">-</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Management and other fees &ndash; net</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">16,417 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;7,544 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Management and other fees &ndash; related medical practices &ndash; net</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;4,666</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;3,930 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: 0.25in"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Revenues &ndash; Net</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 18.6pt; text-align: center; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;34,440 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 18.6pt; text-align: right; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;19,124 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">COSTS AND EXPENSES</P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 14.1pt; text-indent: -4.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to product sales</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;678 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;1,959 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 14.1pt; text-indent: -4.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to service and repair fees</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;1,131 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;1,760 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 14.1pt; text-indent: -4.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to service and repair fees &ndash; related parties</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;12 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;18 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 14.1pt; text-indent: -4.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to patient fee revenue </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;3,877</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 17.2pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">-</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 14.1pt; text-indent: -4.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to management and other fees</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;10,264&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,406 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 18.6pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Costs related to management and other fees &ndash; related medical practices</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;2,490 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;1,669 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 14.1pt; text-indent: -4.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Research and development</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;769 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;650 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 14.1pt; text-indent: -4.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Selling, general and administrative</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,089 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,564 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 14.1pt; text-indent: -4.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Provision for bad debts</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: -4.8pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(218) </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 36.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Total Costs and Expenses</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,092</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;15,526 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Income From Operations</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,348 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,598 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Interest Expense</font></td>
    <td style="vertical-align: bottom; padding-right: -4.8pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(480)</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: -4.8pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(179)</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Investment Income</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Other Expense</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right; text-indent: 0.5in; border-bottom: Black 0.5pt solid">(151)</P></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right; text-indent: 0.5in; border-bottom: Black 0.5pt solid">(13)</P></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Income Before Provision for Income Taxes and&nbsp;&nbsp;Non Controlling Interests&nbsp;&nbsp;</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,838 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,526</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Provision for Income Taxes</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;127</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,668</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,399</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income - Non Controlling Interests</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: -4.8pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;(2,088)</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: -5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">(598)</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income - Controlling Interests</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,580</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;2,801</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income Available to Common Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,280</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;2,616</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income Available to Class A Non-voting Preferred Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;223</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;138</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Net Income Available to Class C Common Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Basic Net Income Per Common Share Available to Common Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.71</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.44</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9.6pt; text-indent: -9.6pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Diluted Net Income Per Common Share Available to Common Stockholders</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.70</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.43</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Basic and Diluted Income Per Share-Common C</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.20</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.12</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Weighted Average Basic Shares Outstanding</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,992 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,914 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Weighted Average Diluted Shares Outstanding</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,120 </font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,041 </font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Weighted Average Basic Shares Outstanding &ndash; Class C Common</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">383</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">383</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif">Weighted Average Diluted Shares Outstanding &ndash; Class C Common</font></td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">383</font></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 2.25pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">383</font></td></tr>
</table>
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